- U.S. Steel’s 1Q adjusted EPS beat estimates at 82c compareed to 77c y/y, with an estimated 80c.
- The net sales were $4.16 billion, down by 6.9% y/y. The estimated net sales was $4.22 billion.
- Adjusted Ebitda was $414 million, down by 3% y/y falling short of the estimated $443.4 million.
- The adjusted net income was $206 million, a rise of 5.6% y/y but still lower than the estimated $226.8 million.
- Steel shipments were 3.80 million tons, down by 3.7% y/y but higher than the estimated 3.63 million.
- The average realized price per ton for flat-rolled steel was $1,054, up 4.2% y/y, but lower than the estimated $1,104.
- US Steel Europe saw a decrease in the average realized price per ton at $830, down by 8.7% y/y but over the estimated $798.75.
- Mini mill reported a sharp rise in the average realized price per ton to $977, up by 23% y/y, but slightly lower than the estimated $1,020.
- Mini Mill’s earnings before interest and income taxes were $99 million compared to $12 million y/y, but the estimate had been $104.6 million.
- Even though tubular’s earnings before interest and income taxes were down by 75% y/y at $57 million, they were higher than the estimated $52.9 million.
- US Steel Europe earnings before interest/income tax were $16 million compared to an estimated loss of $12.7 million.
- Company comments suggest a stronger performance in the second quarter with an expected adjusted EBITDA in the range of $425 million to $475 million.
- The resilient 1Q adjusted EBITDA of $414 million was the result of diverse order books and efficiently run operations despite changing market conditions, although negatively influenced by an unfavorable inventory in the North American flat-rolled segment.
- The Tubular segment kept strong performance despite a softer market environment, whereas U.S. Steel Europe dealt with commercial challenges.
- Market ratings for U.S. Steel held 1 buy, 7 holds, and 0 sells.
United States Steel on Smartkarma
Analyst coverage of United States Steel on Smartkarma reveals interesting insights. Jesus Rodriguez Aguilar provides bullish sentiment in two insightful research reports. In the first report titled “Nippon Steel/United States Steel Corp: Valuation,” the analysis focuses on the White House confirmation of the CFIUS review for the Nippon Steel deal. X shares are seen as attractively priced with significant potential post-election, trading at a compelling valuation compared to peers.
In the second report, “Nippon Steel/United States Steel Corp: Knock-Out Offer,” Aguilar highlights a lucrative special situation. The all-cash offer by Nippon Steel at a premium of 142% presents a promising opportunity. The buyer’s determination to expand market share in the US while committing to retaining jobs and sustainable growth projects adds to the attractiveness of the deal. Despite some concerns raised by unions and lawmakers, Aguilar’s analysis suggests CFIUS approval should not be a major obstacle, creating a favorable investment outlook for United States Steel.
A look at United States Steel Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
United States Steel, according to Smartkarma’s Smart Scores, boasts top marks in the Value category, reflecting its strong position from a valuation perspective. With a solid Growth score and decent Resilience and Momentum scores, the company seems poised for long-term success. While the Dividend score is middling, the overall outlook for United States Steel appears positive.
As an integrated steel producer operating in North America and Europe, United States Steel caters to various industries such as automotive, appliance, construction, and oil and gas. The company’s high Value score suggests it may offer good long-term investment potential, supported by solid Growth prospects and overall resilience. With a mixed Dividend score but promising Momentum, United States Steel seems positioned for a positive long-term trajectory.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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